DuPont Decomposition
Why does HILINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.4% = 4.0% × 2.14 × 2.05
Latest: FY2025
Profitability
Net Margin
4.0%
2.4% →4.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.14x
2.29x →2.14x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
2.48x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 4 years. Driven by net margin improving (2.4% → 4.0%), asset turnover declining (2.29x → 2.14x), leverage falling (2.48x → 2.05x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.4% | 2.29 | 2.48 | 13.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 2.91 | 2.11 | 15.8% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 2.83 | 2.17 | 20.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.0% | 2.14 | 2.05 | 17.4% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.